Solstad Slips into Red

May 19, 2015

Oslo-listed Solstad Offshore, has recorded a loss of NOK 236 million ($31.6 million) for the first quarter of 2015 due to currency rate fluctuations, and unrealized currency loss of NOK 355 million ($47.6 million).

These results compare with profit of NOK 212 million ($28.4 million) in the corresponding period in 2014.

However, the company delivered operating revenue for the first quarter of NOK 909 million. For the same period last year, operating revenue was NOK 870 million, including gain on sale of NOK 44 million.

Solstad booked revenue increase from all three segments compared to last year on changes in fleet (approximately NOK 60 million), higher utilization of particular vessels and a significantly higher currency rate on USD against NOK. However, when compared to fourth quarter 2014, operating revenue is reduced by NOK 79 million.

When compared to first quarter 2014, the Group’s fleet is increased by two large construction service vessels (CSV), and reduced by three smaller anchor-handler vessels and one old construction service vessel.

At the end of the quarter the Solstad had 47 wholly or partly owned vessels, with 1 CSV under construction. The fleet, including vessel under construction, consists of: 20 construction service vessels (CSV), 18 anchor-handlers (AHTS) and 9 platform supply vessels (PSV).

“In general, the outlook is negatively characterized by reduced investments from the oil companies in drilling and subsea projects, uncertainties related to the situation in Brazil, and the effect of the sanctions between EU/USA and Russia. It is expected that the unbalance between supply and demand of offshore vessels will increase, particularly in the PSV segment. In the CSV segment, which is the company’s main segment, the situation is better. For the AHTS segment, the development in the rig activity and the situation in Brazil is crucial for the development,” said the company in a statement.

Furthermore, at the ordinary General Meeting for Solstad Offshore ASA on May 18, 2015, a resolution was passed to pay dividend of NOK 3.50 per share for 2014. Shareholders in the company at 18. May 2015 will receive this dividend on 10 June 2015.